The Herald has reassured their readers that ‘The Ibrox club will be absolutely fine’ despite the publication on Friday of absolutely horrendous accounts for the year to 30 June 2019.
Losses of £11.3m for the Gerrard Revolution were announced alongside a black hole of £10m for the current season. No provision has been made for the ‘many millions of pounds’ due to Sports Direct in January while the fact that Dave King has been cold shouldered was omitted from the report.
The absolutely fine claim is dependent on wealthy benefactors continuing to offset the losses- something that they last did in 2016.
Rather than offset the losses the Three Bears have called in their credit notes with £17m of loans converted into worthless shares over the last 12 months.
When money was needed in January 2018 and January 2019 the Three Bears kept their hands in their pockets with Close Brothers called in to keep the lights on until the season ticket money rolled in. The wallets of the wealthy benefactors have walked away.
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Previous forecasts by auditors Campbell Dallas have proved to be very optimistic, this time they have stated that £10m is needed with the first donation required this month, strangely no figure is put on what is required to meet the November payroll.
Undeterred The Herald has good news for their readers:
The Ibrox club will be absolutely fine – as long as their wealthy benefactors continue to offset their losses with soft loans which will be converted into equity somewhere down the line. That, though, is not quite as simple as it sounds.
King, the major shareholder and chairman, admitted shortly after the current regime seized control from their despised and distrusted predecessors back in 2015 that their business strategy is unsustainable in the long term. But here we are four years down the line and it remains in place. How much longer can their backers continue to reach into their pockets?
They might, unlike many of those who occupied the Rangers boardroom before them, be bone fide fans who are admired, successful and respected in their respective spheres. However, they don’t have limitless funds.
Living within their means, then, should be as great an ambition for Rangers as ending their city rivals’ unprecedented spell of domestic dominance.
With no club in Scotland interested in Financial Fair Play no sanctions will be imposed by the SFA or SPFL. Imposing a registration (transfer) embargo after announcing the £14m losses for the year to June 2018 would have prevented the club from the contracts given to Steve Davis and Jermain Defoe followed by the transfer fees agreed for Filip Helander and Ryan Kent.
